The parties agree to establish and administer a Supplement Employment Benefits Plan (the "Plan") as follows:

The objective of the Plan is to supplement employment insurance benefits received by eligible female Residents who are on approved Maternity Leave pursuant to the Collective Agreement.

The benefit level for eligible Residents under the Plan is as follows:

(a) Maternity Leave allowance will provide an eligible Resident with two (2) weeks remuneration at 85% of the Resident's normal weekly earnings.

(b) An additional fifteen (15) weekly payments equivalent to the difference between the employment insurance gross benefits and any other earnings received by the Resident and 85% of the Resident's normal weekly earnings will be made by the Employer to the Resident.

(c) Benefits under this Plan will not exceed seventeen (17) weeks inclusive of the two (2) week waiting period.

(d) For the purpose of this Plan, "normal weekly" earnings shall mean half of the Bi-Weekly rate as listed in the Wage Schedule, prorated for part-time Residents.

(e) The conclusion of a term of appointment will not interrupt the Resident's access to SEB benefits.

Residents are not entitled to receive SEB Plan benefits and sick leave benefits concurrently. However, a Resident may opt to utilize sick leave instead of applying for benefits under this Plan, provided she satisfies the Employer that her absence is due to a valid health-related condition, and that she is unable to attend at work to perform her duties.

The Resident shall not be prohibited from utilizing sick leave credits prior to, or subsequent to, a period of maternity leave with benefits payable in accordance with Section 2 above.

To be eligible for SEB Plan benefits as described in Section 2 above, a Resident must:

(a) not be in receipt of sick leave benefits;

(b) must provide satisfactory documentation to the Employer that she has applied for and is in receipt of employment insurance benefits; and ]

(c) a Resident who is not eligible for or is disentitled to employment insurance benefits is entitled to the full amount of benefits under the Plan only under the following circumstances:

i) she does not have a sufficient number of insurable weeks of employment to qualify (at least 20 weeks); or

ii) she works less than the required number of hours (15 hours per week); or

iii) her earnings are at least equal to 20% of the maximum weekly insurable earnings.

The Plan will be effective upon approval from Canada Employment and Immigration Commission (the "CEIC"), but benefit entitlement shall be retroactive to the date of ratification of the 2001-2004 Collective Agreement. In the event the CEIC does not approve the Plan, then the parties agree to meet and discuss amendment to facilitate approval of the Plan.

The Plan will continue in effect until a new Collective Agreement is concluded between the parties.

The Plan will be financed by the Employer's general revenues either directly or through an insured arrangement.

The Employer shall keep a separate accounting record of benefits paid from the Plan.

On termination of the Plan, all remaining assets will revert to the Employer or be used for payments under the Plan or for administrative costs associated with the Plan.

The Residents have no vested right to payments under the Plan except to payments during a period of unemployment specified in the Plan.

Payment in respect of guaranteed remuneration or in respect of deferred remuneration or severance pay benefits are not reduced or increased by payments received under this Plan.

HEABC will inform the Canada Employment and Immigration Commission in writing of any changes to the Plan within (30) days of the effective date of any change.

In the event that present or future legislation renders null and void or materially alters any provision of this Memorandum of Agreement or the SEB Plan entered into between the Parties, the following shall apply:

(a) The remaining provisions of the Memorandum of Agreement or SEB Plan shall remain in full force and effect for the term of the Collective Agreement.

(b) The Employer and the Union shall, as soon as possible, negotiate mutually agreeable provisions to be substituted for the provisions so rendered null and void or materially altered.

(c) If a mutual agreement cannot be struck as provided in (b) above, the matter shall be arbitrated pursuant to the provisions of the Collective Agreement.